Muthoot Finance Ltd – Revised Business Loan Policy (Simplified Overview)

Here’s a simplified explanation of Muthoot Finance’s new policy for business loans based on GST and banking surrogate models:

💸 Loan Features

• Loan Amount: Rs 5 lakhs to Rs 20 lakhs
• Tenure: Up to 3 years
• Rate of Interest (ROI):
  • Banking Surrogate:
    • Service, Wholesaler (with stock), Manufacturing: Max Rs 10 lakh – ROI: 20%
    • Trading & Retailers: Max Rs 7.5 lakh – ROI: 24%
    • Petrol Pump: Max Rs 20 lakh (Min Turnover Rs 18 Cr) – ROI: 18%
  • GST Surrogate: Max Rs 20 lakh – ROI: 18%
• Processing Fee (PF): 3% + Insurance

🌐 Eligibility Criteria

• Business Vintage: Minimum 3 years
• CIBIL Score: 700+
• Minimum ADB (Average Daily Balance): Rs 40,000
• BTO Match: 70% alignment between GST and Banking turnover
• EMI Cheque Return: Only 1 return allowed in last 6 months

💼 Industry-wise Margin Requirement

• Retailer: 20%
• Wholesaler/Trader/Distributor: 8%
• Manufacturing: 10%
• Service Sector: 12%

⛔️ Negative Profiles (Loans Not Allowed For)

• Media, Collections, Law Firms, Builders, Liquor Shops
• Mobile & Grocery Stores, Coaching Centers, PGs
• International Logistics, Poultry, Cable Operators
• Real Estate, SPAs
• Garment Retail Shops: Max Rs 5 lakh only
• Jewellers: Only accepted with turnover > Rs 2 Cr

📌 Other Important Points

• FOIR (Fixed Obligations to Income Ratio): Up to 70%
• Loan Enquiries: Max 15 in last 60 days

📄 Documents Required

1. Photo, PAN & Aadhaar (Applicant & Co-applicant – Mandatory)
2. Last 12 months’ complete GST 3B returns
3. Latest 6 months’ bank statements (all current accounts)
4. GST Registration & Udyam Aadhaar
5. Latest electricity bill (for address proof)
6. Statement of Accounts (SOA), Loan Sheet, and repayment track of all current loans

This revised policy provides flexible loan options for small and medium businesses with clear documentation and transparent evaluation norms. Always double-check your eligibility and prepare accurate documents before applying.